Canadian DollarHi investors! Here’s your 5-minute overview of the forex, crypto, and stock markets with hot stories that may have an impact on your investment strategy.
Forex Market Overview
Last week’s Federal Reserve meeting signaled a strong probability of future rate cuts, causing the US Dollar to fall to the bottom of the world’s major currency rankings. While this fall coincided with a rise in the stock market, many economists are now having a much more bearish view for the American economy.
This week, meetings between the US and China could resolve an ongoing trade dispute between both major economies. Meanwhile, OPEC meetings and the G20 summit are expected to influence the trending value of the Canadian Dollar.
Elsewhere in the world, negative reports coming from the Bank of England caused the Canadian Dollar to experience yet another losing week. The Euro, on the other hand, was able to rise, largely due to the fall of the US Dollar.
On the other side of the world, the Australian Dollar declined while the New Zealand Dollar enjoyed some impressive gains. There will be plenty of important reports coming out this week, including:
- British PMI figures
- Interest rate announcements from the Bank of New Zealand
- Low-tier data for the middling Japanese Yen.
Taking a Closer Look at EUR/USD
EUR/USD has now broken above the daily Ichimoku Cloud as well as a downward channel that formed back in January 2019. The future cloud appears bullish and al other Ichimoku moving averages are moving up.
With that, we could expect a temporary pullback towards the upper band of the Ichimoku cloud followed new bullish movement for the pair. For more on Ichimoku strategy development, don’t forget to grab the PDF version of my book, Ichimoku Secrets.
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Stock Market Overview
The S&P 500 experienced a bit of a down week last week, dipping below 2,900 points last Tuesday and remaining below that mark for the rest of the week. Other major American exchanges experienced mildly depressing weeks as well, largely due to ongoing geopolitical issues and falling oil prices.
Most analysts are predicting above-average levels of volatility early in the week as traders eagerly prepare for announcements from the Fed. Following the Fed’s next meeting, which is scheduled for this Wednesday, prices may break out into a new range.
Stocks To Watch
As the Fed hinted at the possibility of rate changes, massive amounts of funds were shifted into the stock market, causing the S&P 500 to inch closer to the 3,000 point mark. However, despite these figures, many traders are still taking a very cautious approach to the market.
Last week’s biggest IPO, came from the tech company Slack Technologies (NYSE:WORK). Despite many experts predicting the company would open around $26, it ended up opening about 50 percent higher, near $39. Slack is yet another success story in what has already been a very busy IPO season.
In the retail sector, following Pier 1's (NYSE:PIR)’s 31 percent downward slide, investors everywhere have begun to express concerns. Retailers, in general, have gotten off to a slow start this summer, many of whom have been directly affected by Amazon’s ever-growing reach.
Elsewhere in our markets, housing prices have been moving upward well above the inflation rate. Though prices have not yet reached “bubble” level, the major REIT’s will need to be paid close attention to.
The upcoming G20 meeting will likely be reflected in markets by the end of the week. Whether the world’s major economies will move towards or away from the pursuit of free trade remains yet to be seen.
Crypto Market Overview
Last week was a huge week for Bitcoin, as the world’s largest cryptocurrency grew from around $9,000 to more than $11,000. Many industry experts are predicting that Bitcoin may break the $20,000 mark for the first time by the end of the year. On the other hand, there are still plenty of developments that need to play out.
As Bitcoin surged, so did many other cryptocurrencies. One of the biggest crypto developments last week was Facebook’s official launch of Libra. Libra has already established itself as one of the most well-supported currencies of all time. It has backing from several major banks and other industry players. But still, whether or not Libra is a true cryptocurrency, remains to be seen. I feel very strongly about this and made it clear here.
Elsewhere in the crypto world, some major political developments are going down. Russia’s movement towards allowing crypto trading may soon cause the entire industry to surge. Additionally, Malta recently announced a plan to register all rent contracts on the blockchain. This could help reinforce the legitimacy of the industry even further.
*This article was originally published on Invest Diva: